State Senior Senator Bo Watson, Chairman of the Senate Finance, Ways and Means Committee, has formally approved the first two funding releases for Tennessee State University (TSU) under a new $91.2 million agreement between the state of Tennessee and TSU.
The agreement, formalized through a Memorandum of Understanding (MOU) signed earlier this month, outlines a detailed plan for TSU to receive phased funding through 2028, contingent upon meeting specific financial and operational benchmarks. The initial disbursements approved by Senator Watson include $5.7 million and $35 million, supporting early-stage expansion and institutional strengthening efforts at the state’s only public historically Black university.
Senator Watson, whose legislative role includes final authorization of each disbursement under the MOU, emphasized the importance of accountability and partnership in state-supported higher education.
“This agreement is much greater than a financial investment, it is also about institutional transformation and long-term success,” said Senator Watson. “The State of Tennessee is committed to getting TSU back on track and supporting its efforts to become stronger and more sustainable. I’m proud to support this first phase of funding and look forward to continued collaboration as TSU meets its benchmarks and delivers on its mission for Tennessee students.”
The MOU, executed by the Tennessee Comptroller of the Treasury, the Department of Finance and Administration, and TSU, establishes clear oversight protocols, quarterly financial reporting, and operational reforms. It aims to position TSU for fiscal sustainability, increased enrollment, and improved outcomes over the next five years.
“I’m so thrilled to announce this memorandum of understanding with our esteemed partners and Tennessee State University. This collaboration marks a significant step forward in the commitment to provide exceptional educational opportunities to students in Hamilton County and globally,” said TSU Board Chair Dakasha Winton. “On behalf of the board of trustees and Tennessee State University, we are so grateful for the unwavering support and commitment from the State of Tennessee, including members of the Hamilton County delegation. The State of Tennessee’s continued dedication to advancing higher education and investing in our institution is instrumental in making initiatives like this possible. This partnership underscores the State’s commitment to nurturing talent, driving economic growth and ensuring a brighter future for all Tennesseans.”
Under the terms of the agreement, TSU is eligible to receive funding in stages through July 1, 2028, pending demonstration of progress toward deficit reduction, operational improvements, and long-term sustainability.